The Sei (SEI) hype, which started with the launch of its mainnet on August 15, has captivated South Korean-based cryptocurrency exchanges. Significant price differences have emerged between South Korean and global cryptocurrency exchanges for SEI.
SEI Price Soars on South Korean Crypto Exchanges
SEI, which shares the same name as its network, made a significant breakthrough by capturing a share worth millions of dollars in daily trading volume on South Korean cryptocurrency exchanges Upbit and Bithumb. According to CoinGecko, the price of SEI increased by 24.5% within 24 hours after the launch of Layer 1 Blockchain’s mainnet on August 15.
SEI is also listed on many global cryptocurrency exchanges, including Binance and Coinbase. Its trading volume has reached extreme levels, particularly on South Korean exchanges. CoinGecko data shows that Upbit, which generated a trading volume of $560.1 million in the SEI/KRW pair in the last 24 hours, is the leading cryptocurrency exchange in terms of altcoin trading volume. Binance, on the other hand, ranked second with a trading volume of $160.3 million in the SEI/USDT pair and $67.7 million in the SEI/KRW pair, followed by Bithumb.
Meanwhile, significant price differences, known as the “kimchi premium,” have emerged between South Korean and global cryptocurrency exchanges, as previously seen with BTC and altcoins. While the price of SEI was around $0.23 on Binance, it reached $0.52 on Upbit. The price difference between the two cryptocurrency exchanges has almost closed today.
South Korean Investors Queue Up for SEI
Jeff Mei, the CEO of cryptocurrency exchange BTSE, commented on SEI, stating that the Sei Blockchain’s growing volume on local exchanges Bithumb and Upbit seems to be directly linked to the individual market in South Korea. He also pointed out that investors are taking advantage of arbitrage opportunities due to the price differences among cryptocurrency exchanges, saying, “This is probably due to market makers’ activities resulting from unequal liquidity distribution commonly observed in cryptocurrency exchanges when trading volume increases for a particular token. The situation will return to normal once the price settles.”
Justin d’Anethan, Business Development Manager at Keyrock APAC, stated in an interview with The Block that many investors are open to volatility in the current trading environment and that SEI is being portrayed as a potential rival to SOL and SUI, attracting attention. He mentioned, “Due to well-known capital controls and restrictions in South Korea, a wide gap known as the ‘kimchi premium’ has emerged between domestic ($0.5) and overseas prices ($0.2). After the tension following the listing of a new altcoin usually subsides, the volatility and volume surrounding that altcoin cool down. However, as it continues to be a new trading option, we will continue to see arbitrage opportunities between the South Korean and global markets.”
